This case study summarizes the transformation of Apollo Tyres under Onkar Kanwar's leadership. Key changes included establishing a formal HR department to improve recruitment, performance management, and employee development. A new online performance management system called PACE was implemented, along with recognition programs to reward top performers. The Apollo Laureate Academy was also launched to provide leadership training programs to help develop managers for future roles. These HR initiatives helped professionalize Apollo's practices and build an engaged, high-performing workforce.

1. Case Study
on
Transformation of Apollo Tyres
Presented By:
Shubham Singhal
80303120053
NMIMS, Hyderabad

2. Background of the Case
• Apollo Tyres was started by
Onkar Kanwar’s Father,
Ranauq Singh in the 1970’s
• Promoted and managed by
the Kanwar family
• Apollo set the goal of
reaching sales revenue of US$
2 billion by 2010
• It has gone through many
changes, diversifications as
required to sustain in the
market

3. Vision and Values
• “A significant player in the
global tyre industry and a
brand of choice, providing
customer delight and
continuously enhancing
stakeholder value”
• C: Care for customer
• R: Respect for associates
• E: Excellence through
teamwork
• A: Always learning
• T: Trust mutually
• E: Ethical practices

4. Competitive Advantage and Growth
• “To gain a competitive edge in
the market, we had to
manufacture tyres that would
neither crack or chip with
usage” – P.K.Muhammed, chief,
R&D
• New tyre names Hercules as per
the Indian culture of
overloading, became Apollo’s
cash cow later on.
• Apollo expanded for passenger
car tyres and not just trucks
• International reach- Designed as
per their need- better roads,
high speed driving
• Introduction of Radials

6. Words of the Chief of Human Resources
• “Apollo is a performance-
focused company with huge
ambitions and global plans.
The challenge is to build
internal capabilities and make
Apollo a preferred employer.”
- Tapan Mitra, Chief of Human
Resources

7. The Problems
• Until the late 1980’s, the HR
department at the head office
was small
• No proper communication
channel between the sales,
marketing and corporate
employees and top
management
• Critical decisions were based
on likes and dislikes of top
management
• There was no systematic
people development process in
place
• Job rotation and promotion
structures were haphazard
• Being a sales and marketing
focused organization, there
were limitations on growth
prospects for technical
employees.
• Compensation of managerial
employees required
restructuring.
• The corporate office, Gurgaon
was overstaffed, reduction was
to be made, while the average
quality should come up.

8. Changes
• With Onkar Kanwar’s arrival,
recruiting managers/officers
and creating a contented
workforce became the focus
• Initiatives were top driven
• HR department was
established for sales &
marketing functions separate
from corporate & plant HR
setups
• All HR setups were
systematized
• IT systems were introduced in
HR

9. Performance Management System
• Mercer suggested online PMS to
aid the communication
• First 2 runs of PMS to be
manual, online later on
• Decision: By 1, April, 2006
everyone would be on PMS
system titled PACE
• Recognition schemes: Roll of
Honour, employee of the year,
annual conferences of
sales/manufacturing,
International holidays awarded
as prizes.
• Poor performers after giving
chance and support of
improvement were removed
after every 2 or 3 years

10. PMS (contd.)
• Machine operators:
▫ If score is
 = 85%: Diamond Achiever
 = 75%: Green Builder
 < 75%: Red Builder
• Assessment is displayed where
it is visible to peers
• Result:
▫ Operators remained
conscious about their work
quality

11. Apollo Laureate Academy
• Introduction:
▫ Launched in April, 2007
▫ Innovative step by HR to
strengthen developmental efforts
• Aim:
▫ To build strong leadership
pipeline, provide value proposition
to employees & prepare managers
for future leadership roles
• Offered leadership, management
development, functional
programmes in collaboration with
IIMA, XLRI, MDI, Grow Talent
• ELDP- Senior Managers
• ALDP- Middle Managers
• Supervisory Development
programmes- Junior Managers